Bitcoin neural network analysis week 40/2018: No autum bull run yet?

in #bitcoin6 years ago

Analysis of past week:
Last week the network predicted more gains but it turned out to be a rather boring week without big wins or losses. The network did not find the optimum, but nothing much happened so it wasn't really bad either.

I am comparing three strategies, first hold fiat and make a small profit elsewhere, hold bitcoin, or follow the network predictions. Since I started documenting my predictions on the blockchain these strategies compare as

Fiat with a weekly profit of 0.5%: 13364.42$ (up 0.5 %)
Holding BTC: 6625.56$ (down 1.3%)
Network strategy: 7096.92$ (down 1.3%)
Starting capital: 11497.40$

The fiat strategy is up since most of the documented time has been a bear market, but the neural network has gained an advantage over btc.

Forecast:
download (28).png
Red areas are predicted below the current price, blue/yellow areas indicate the expected passive growth, green areas are better than the expected growth. The vertical line is one week into the future and its size provides the prediction variance. The network prediction is smooth as the random noise is filtered out.

The network stays positive in the short run and predicts solid gains for the week. However the longer term outlook remains very mixed with little net up or down movement. It seems we will have more sideways trading before another real rally.

The network clearly prefers bitcoin over fiat this week, so my strategy will be holding btc.

This post is not financial advice! I am testing the potential to use neural networks for price predictions and am documenting my results on the blockchain to have provable public results. All prices are based on 0:00 UTC for consistency!

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